Talks are currently ongoing aimed at devolving powers to set the APD for long haul flights from the Province and its expected that the Assembly will be in a position to axe the APD completely on long haul flights (which includes transatlantic flights) by the end of the year. Since the Chancellor's personal intervention on the matter last November the tax here has been reduced to £13 per passenger, but this is still some way above the 3 Euro tax on flying from Dublin.

APD on Domestic flights however will continue to be set by Westminster and will not be a devolved matter. So from April 1 Domestic APD increases from £12 to £13 per traveller, with another possible increase due in April 2013. According to local ABTA spokesperson Doreen McKenzie travellers who have already booked and paid for their ticket for travel after April 1 will probably not have to pay the increase announced in the budget as most airlines will cover the difference - "however it depends on the individual airline."

The Chancellor has been criticised right across the travel and tourism industry by pushing ahead with the increase in Air Passenger Duty, double the rate of inflation. The news is a blow to the 'A Fair Tax on Flying' travel industry coalition which had been campaigning right up until yesterday for the planned rises to be scrapped. Board of Airline Representatives in the UK (BAR UK) branded the decision to stick with the APD rise a "reckless brake on the economy."

Mark Tanzer, Chief Executive of ABTA said: "The Chancellor's confirmation that he intends to go ahead with double inflationary rise in APD on 1 April, together with a further increase in 2013, is incredibly disappointing. The Government has repeatedly said it looks to travel and tourism as one of its key drivers of growth but instead of listening to concerns that APD is stunting this growth, not only in travel but in the wider economy too, it has chosen to significantly increase the tax burden."